Investors in Nigeria’s listed equities booked about N370billion gain in the trading week ended Friday August 13 as sentiment failed to tilt more towards the bears.
Defying most analysts’ views on the review trading week, the market grew by 1.86percent, driven largely by increased demand in Oil & Gas, Banking, and Consumer Goods stocks.
This month alone, the market has rallied by 2.56percent as investors showed remarkable interest in value stocks ahead of their half-year (H1) results releases. The record positive in review week helped reduce the negative return seen this year to -1.83percent.
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The Nigerian Exchange Limited (NGX) All Share Index (ASI) increased from week-open low of 38,810.75 points to 39,522.3 points, while the value of listed equities rose from N20.221trillion to N20.591trillion.
Except NGX Industrial Index (-1.35percent) and NGX Insurance Index (-2.49percent), all other key sectoral indices closed the week in green –namely NGX Banking Index (+0.49percent), NGX Consumer Goods Index (+0.30percent), NGX Oil & Gas Index (+1.05percent), and NGX Pension Index (+0.32percent).
Lagos-based analysts at Meristem had in their August 9 note to investors said “the allocation of Special Drawing Rights worth $3.35billion by the International Monetary Fund (IMF) to Nigeria, effective August 23, 2021 is expected to help ease investor concerns around FX liquidity and outlook”. This, the analysts noted should translate to positive sentiment in the equities market.
